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SF 2443

as introduced - 87th Legislature (2011 - 2012) Posted on 03/15/2012 08:58am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to employment; providing for the application of gratuities in calculating
the minimum wage; amending Minnesota Statutes 2010, section 177.24,
subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 177.24, subdivision 1, is amended to read:


Subdivision 1.

Amount.

(a) For purposes of this subdivision, the terms defined in
this paragraph have the meanings given them.

(1) "Large employer" means an enterprise whose annual gross volume of sales
made or business done is not less than $625,000 (exclusive of excise taxes at the retail
level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made
or business done is less than $625,000 (exclusive of excise taxes at the retail level that
are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer
must pay each employee wages at a rate of at least $5.15 an hour beginning September
1, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1998, and at a rate of at least $5.25 an hour beginning August 1, 2005.

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
employment, an employer may pay an employee under the age of 20 years a wage of $4.90
an hour. No employer may take any action to displace any employee, including a partial
displacement through a reduction in hours, wages, or employment benefits, in order to
hire an employee at the wage authorized in this paragraph.

new text begin (d) Notwithstanding paragraph (b), an employer must pay an employee receiving
gratuities at a rate that is equal to: (1) at least $7.25 per hour; or (2) an hourly wage at
least equal to the applicable rate under this section, or United States Code, title 29, chapter
8, if the employee does not earn sufficient gratuities during the pay period so that the sum
of $7.25 per hour and gratuities received is at least $12 per hour for the pay period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2010, section 177.24, subdivision 2, is amended to read:


Subd. 2.

Gratuities not applied.

new text beginExcept as provided in subdivision 1, paragraph
(d),
new text endno employer may directly or indirectly credit, apply, or utilize gratuities towards
payment of the minimum wage set by this section or federal law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end